#2 Valuetronics Holdings Limited
Valuetronics is an integrated electronics manufacturing services (EMS) provider. It offers Engineering, and Manufacturing services.
Valuetronics specializes in Original Equipment Manufacturing (OEM) services including PCBA assembly, and Box-Build Assembly, as well as Engineering and New Product Introduction (NPI) services. It is headquarted in Hong Kong and has manufacturing facilities in Guandong and Vietnam.
As of its latest quarterly report, Valuetronic’s revenue decreased by 16.8% to HKD 2.35 billion. Its net profit decreased by 10.3% to HKD 178.9 million.
Free cash flow still comes in at a good level of HKD 209.1 million. As a result, cash balance of the company grew to a much healthier level of HKD 1.05 billion.
Valuetronics have increased its dividends from HKD 0.2 per share in 2014 to a level between HKD 0.25 – 0.27 in recent years. Dividends have been slowly increasing with its capabilities in generating outstanding free cash flow.
Valuetronics last closed at $0.58 which values it at a P/E ratio of 7.6x and a dividend yield of 6.2%.
#3 PNE Industries Limited
PNE operates in two business segments – contract manufacturing and trading. Under contract manufacturing electrical controllers and other electric and electrical products are sold. Under the trading business, emergency lighting equipment and related products are traded.
As of its latest annual report, PNE’s revenue dropped by 27.9% to $102.2 million. Its net profit increased by an outstanding 54.7% to $8.1 million.
Free cash flow came in at an $7.05 million. As a result, cash balance of the company came was at a very healthy level of $41.3 million.
PNE has a track record of offering special dividends in the past 8 years. As of this year, $0.09 per share was paid out as compared to $0.06 in 2018 and 2019.
PNE last closed at $0.83, which values it at a P/E ratio of 10.26 and dividend yield of 7.9%.